diff --git a/tests/integration/kubernetes/gha-run.sh b/tests/integration/kubernetes/gha-run.sh
index 7dd65644a3..b9ab940984 100755
--- a/tests/integration/kubernetes/gha-run.sh
+++ b/tests/integration/kubernetes/gha-run.sh
@@ -117,9 +117,11 @@ function deploy_kata() {
     yq write -i "${tools_dir}/packaging/kata-deploy/kata-deploy/base/kata-deploy.yaml" 'spec.template.spec.containers[0].env[4].value' --tag '!!str' "true"
     # Let the `kata-deploy` create the default `kata` runtime class
     yq write -i "${tools_dir}/packaging/kata-deploy/kata-deploy/base/kata-deploy.yaml" 'spec.template.spec.containers[0].env[5].value' --tag '!!str' "true"
+    # Enable 'default_vcpus' hypervisor annotation
+    yq write -i "${tools_dir}/packaging/kata-deploy/kata-deploy/base/kata-deploy.yaml" 'spec.template.spec.containers[0].env[6].value' "default_vcpus"
 
     if [ "${KATA_HOST_OS}" = "cbl-mariner" ]; then
-        yq write -i "${tools_dir}/packaging/kata-deploy/kata-deploy/base/kata-deploy.yaml" 'spec.template.spec.containers[0].env[6].value' "initrd kernel"
+        yq write -i "${tools_dir}/packaging/kata-deploy/kata-deploy/base/kata-deploy.yaml" 'spec.template.spec.containers[0].env[6].value' "initrd kernel default_vcpus"
         yq write -i "${tools_dir}/packaging/kata-deploy/kata-deploy/base/kata-deploy.yaml" 'spec.template.spec.containers[0].env[+].name' "HOST_OS"
         yq write -i "${tools_dir}/packaging/kata-deploy/kata-deploy/base/kata-deploy.yaml" 'spec.template.spec.containers[0].env[-1].value' "${KATA_HOST_OS}"
     fi
diff --git a/tests/integration/kubernetes/k8s-sandbox-vcpus-allocation.bats b/tests/integration/kubernetes/k8s-sandbox-vcpus-allocation.bats
new file mode 100644
index 0000000000..2f0a872c00
--- /dev/null
+++ b/tests/integration/kubernetes/k8s-sandbox-vcpus-allocation.bats
@@ -0,0 +1,40 @@
+#!/usr/bin/env bats
+#
+# Copyright (c) 2023 Intel Corporation
+#
+# SPDX-License-Identifier: Apache-2.0
+#
+
+load "${BATS_TEST_DIRNAME}/../../common.bash"
+load "${BATS_TEST_DIRNAME}/tests_common.sh"
+
+setup() {
+	[ "${KATA_HYPERVISOR}" == "dragonball" ] && \
+		skip "runtime-rs is still using the old vcpus allocation algorithm, skipping the test"
+
+	get_pod_config_dir
+	pods=( "vcpus-less-than-one-with-no-limits" "vcpus-less-than-one-with-limits" "vcpus-more-than-one-with-limits" )
+	expected_vcpus=( 1 1 2 )
+}
+
+@test "Check the number vcpus are correctly allocated to the sandbox" {
+	# Create the pods
+	kubectl create -f "${pod_config_dir}/pod-sandbox-vcpus-allocation.yaml"
+
+	# Check the pods
+	for i in {0..2}; do
+		kubectl wait --for=jsonpath='{.status.conditions[0].reason}'=PodCompleted --timeout=$timeout pod ${pods[$i]}
+		[ `kubectl logs ${pods[$i]}` -eq ${expected_vcpus[$i]} ]
+	done
+}
+
+teardown() {
+	[ "${KATA_HYPERVISOR}" == "dragonball" ] && \
+		skip "runtime-rs is still using the old vcpus allocation algorithm, skipping the test"
+
+	for pod in "${pods[@]}"; do
+		kubectl logs ${pod}
+	done
+
+	kubectl delete -f "${pod_config_dir}/pod-sandbox-vcpus-allocation.yaml"
+}
diff --git a/tests/integration/kubernetes/run_kubernetes_tests.sh b/tests/integration/kubernetes/run_kubernetes_tests.sh
index 36f7a56c9d..b16c22ae64 100644
--- a/tests/integration/kubernetes/run_kubernetes_tests.sh
+++ b/tests/integration/kubernetes/run_kubernetes_tests.sh
@@ -60,6 +60,7 @@ else
 	K8S_TEST_NORMAL_HOST_UNION=( \
 		"k8s-number-cpus.bats" \
 		"k8s-parallel.bats" \
+		"k8s-sandbox-vcpus-allocation.bats" \
 		"k8s-scale-nginx.bats" \
 	)
 
diff --git a/tests/integration/kubernetes/runtimeclass_workloads/pod-sandbox-vcpus-allocation.yaml b/tests/integration/kubernetes/runtimeclass_workloads/pod-sandbox-vcpus-allocation.yaml
new file mode 100644
index 0000000000..0730840fad
--- /dev/null
+++ b/tests/integration/kubernetes/runtimeclass_workloads/pod-sandbox-vcpus-allocation.yaml
@@ -0,0 +1,54 @@
+#
+# Copyright (c) 2023 Intel Corporation
+#
+# SPDX-License-Identifier: Apache-2.0
+#
+---
+apiVersion: v1
+kind: Pod
+metadata:
+  name: vcpus-less-than-one-with-no-limits
+  annotations:
+    io.katacontainers.config.hypervisor.default_vcpus: "0"
+spec:
+  runtimeClassName: kata
+  containers:
+  - name: vcpus-less-than-one-with-no-limits
+    image: quay.io/prometheus/busybox:latest
+    command: ['nproc', '--all']
+  restartPolicy: Never
+---
+apiVersion: v1
+kind: Pod
+metadata:
+  name: vcpus-less-than-one-with-limits
+  annotations:
+    io.katacontainers.config.hypervisor.default_vcpus: "0.75"
+spec:
+  runtimeClassName: kata
+  containers:
+  - name: vcpus-less-than-one-with-limits
+    image: quay.io/prometheus/busybox:latest
+    resources:
+      limits:
+        cpu: "0.25"
+    command: ['nproc', '--all']
+  restartPolicy: Never
+---
+apiVersion: v1
+kind: Pod
+metadata:
+  name: vcpus-more-than-one-with-limits
+  annotations:
+    io.katacontainers.config.hypervisor.default_vcpus: "0.75"
+spec:
+  runtimeClassName: kata
+  containers:
+  - name: vcpus-more-than-one-with-limits
+    image: quay.io/prometheus/busybox:latest
+    resources:
+      limits:
+        cpu: "1.2"
+    command: ['nproc', '--all']
+  restartPolicy: Never
+---